Duke Realty, Browning to Build AllPoints Midwest Building 6

Zacks

In tune with its industrial portfolio strengthening efforts, the joint venture (JV) of Duke Realty Corporation (DRE) and Browning Investments – Browning/Duke LLC – disclosed the development of a new industrial building in AllPoints Midwest. As a matter of fact, AllPoints Midwest is Browning/Duke LLC’s largest modern bulk distribution parks in the Indianapolis region.

The new to-be-developed building, which will be called AllPoints Midwest Building 6, would meet the needs of large users of modern bulk warehouse space. Upon completion, this 936,510 square feet building placed in AllPoints Midwest will be the only facility to offer over 770,000 square feet of contiguous space in the greater Indianapolis metro area.

Notably, to date, as of Aug 11, 2014, Browning/Duke LLC has constructed five buildings in AllPoints Midwest distribution park, which includes two properties that are currently under development. All assets, spanning approximately 3.8 million square feet, are fully occupied. The tenant roster includes Wal-Mart Stores Inc. (WMT), Ingram Micro Inc. (IM) and Prime Distribution Services.

Strong demand of AllPoints Midwest among the companies opting for best warehouse and distribution space in the region, called for the new industrial development at this distribution park by the JV. Importantly, the strategic location of AllPoints Midwest owing to better airport and rail connectivity and highway access makes it a much sought-after property. Adding to the bliss is the announcement of a route comprising stops all over AllPoints Midwest, by the Central Indiana Regional Transportation Authority.

Recently, Duke Realty reported second-quarter 2014 results with core funds from operations (FFO) per share of 30 cents, a penny ahead of the Zacks Consensus Estimate and 3 cents above the prior-year quarter figure. The performance was driven by a notable rise in revenues and occupancy growth.

This real estate investment trust (REIT) carries a Zacks Rank #3 (Hold). W. P. Carey Inc. (WPC) is a better-ranked stocks in the REIT-Equity Trust – Other industry, having a Zacks Rank #1 (Strong Buy).

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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